What is net asset value?

Net Asset Value is the net value of an investment fund's assets less its liabilities, divided by the number of shares outstanding. Funds can be open or closed and the pricing of each share is based on NAV. The price of each fund share is reflected as the NAVPS or per-share value.

What is the difference between NAV and net asset value?

Most commonly used in the context of a mutual fund or an exchange-traded fund (ETF), NAV is the price at which the shares of the funds registered with the U.S. Securities and Exchange Commission (SEC) are traded. Net Asset Value is the net value of an investment fund's assets less its liabilities, divided by the number of shares outstanding.

What happens to net asset value if a fund goes up?

When the value of the securities in the fund goes up, the net asset value goes up. Conversely, when the value of the securities in the fund goes down, the NAV goes down: If the value of securities in the fund increases, then the NAV of the fund increases. If the value of the securities in the fund decreases, then the NAV of the fund decreases.

Are mutual funds based on net asset value?

Investors buy and sell mutual fund shares at prices based on net asset value. With exchange-traded funds, however, a fund's net asset value can differ from its market price (the price at which shares can be bought or sold).